Amazon is the leading online retailer in the US with a 23% market share. It was founded in 1994 and is headquartered in Seattle. Amazon targets all demographics and offers a wide range of products with convenient online purchasing and competitive prices. It has successfully positioned itself as a global e-commerce company that allows customers to buy anything and have it delivered anywhere.

1. Project on
Amazon
By Group 9

2. About Industry
 Amazon is the leading U.S online e-commerce retailer
consumer industry with a 23% market share more than its
some of the major competitors including Wal-Mart.
 The market of online e-commerce retail is highly dominated
by Amazon.
 Top Competitors for Amazon includes Alibaba, Walmart,
Otto, Priceline, E-bay, Flipkart, and Netflix.
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3. About Company
 Amazon is an American electronic commerce and cloud
company founded by Jeff Bozos on July 5’ 1994.
 It is a Washington based public company having it’s
headquarter at Seattle, Washington.
 It is the largest internet retailer in the world and second
largest in terms of total sales after Alibaba Group
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4. 7P’s
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5. STP
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Type of segmentation Segmentation criteria Amazon target
customer segment
Geographic
Region More than 100 countries
Density Urban and rural
Demographic
Age 18 and older
Gender Males & Females
Occupation Students, employees
and professionals
Behavioral Degree of loyalty ‘Hard core loyals’, ‘Soft
core loyals’, Switchers’
Benefits sought Widest range of
products, Convenience
of online purchasing,
Competitive prices
Personality Easygoing, determined
and ambitious
User status non-users, potential
users, first-time users,
regular users, or ex-
users of a product
Psychographic Social class All social classes: lower
class, working class,
middle class and upper
class
Lifestyle Resigned, Struggler,
Mainstreamer, Aspirer,
Explorer, Reformer

6. STP
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 Amazon has successfully positioned itself as a “Go global Act
local” e-commerce giant where people can buy anything & get it
delivered at any remote locations.
 Using the catchphrases like #AurDikhao, #ApniDukan, #Amazon
Wale in its most recent campaigns in India, it has further helped
them acquire a distinct space in the consumer’s mind.
 Amazon mainly uses the following ways of positioning:
 Multi-segment Positioning
 Adaptive Positioning

7. 3C’s
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8. Flower of Service
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Order-taking Mobile App & Website
Information Through Website and App
Billing Invoice through registered e-
mail ID
Payment Credit/Debit card, Net-
banking, Amazon Pay, Gift
coupons, COD
Hospitality Ties with excellent retailers
and logistics
Exceptions Problem Handling and
solving
Consultation 24*7 Customer Support
Safe-Keeping Three Layer Packaging
Mechanism

9. Branding Strategies of
Service
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10. Service marketing
Communication Mix
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Online Marketing Print Sales Promotion

11. Service marketing
Communication Mix
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Coupons & Gifts Price Promotion Social Media

12. Service Blue Print
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13. Moment of Truth
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 A period of time during which a consumer directly interacts with a
service.” (Shostacks 1985).
 There is not always a parallel frontstage action for every customer
touchpoint.
 A customer can interact directly with a service without encountering a
frontstage actor, like it’s the case with the appliance delivery in our
example blueprint.
 Each time a customer interacts with a service (via technology),
a moment of truth occurs.
 During these moments of truth, customers judge your quality and make
decisions regarding future purchases.

14. Queue Configuration
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 Amazon follow Parallel lines to multiple servers because
Amazon has 11 cloud regions across the world Each region
has multiple sets of data centers, and there are 28 total sets
across the world.
 Each of those has one or more data centers, with a typical
facility containing 50,000 to 80,000 servers.
 A conservative estimate puts Amazon over 1.5 million
servers globally.
 Approx. 2.6 billion people visit Amazon website per month

15. Service Scape
Model
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 Service scape is used to create an environment which
results in increase in trust and purchase intentions.
Servicescape related to e commerce industry are as
follows:
 Website Design
 Visual appeal
 Relevance of information
 Customer interactivity
 Ease of payment
 Functionality
 Fastness
 This helps in increasing the trust in the website and
increase the purchase intentions

16. Brand loyalty of
Amazon
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 Amazon has amazing brand loyalty.
 The gap between the customer expectation and the
potential value is less.
 This is one of the reasons for customer loyalty for amazon.
 Amazon always kept its promise of giving best quality
products and on time delivery.
 Amazon able to increase its revenue from 6.92 billion
dollars in 2005 to 177.87 billion in 2017.
 Prime services have enticed an estimated 70 million-90
million people to sign up for membership.

17. Churn Drivers
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 Amazon is Addictive
 Amazon close the sale
 Amazon is their One stop Shop
 Amazon is for Savvy shoppers

18. Service guarantees of
Amazon
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Amazon follows A - to - Z Guarantee.
According to this below are the service
guarantees amazon gives.

19. Suggestions and
Conclusion
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 Customer Trust
 Customer Loyalty
 Pricing Competition
 Brand Recognition
 Sale Conversion
 A One-stop Solution

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